Why Vertex Energy (VTNR) Stock Is Down Today

NEW YORK (TheStreet) -- Vertex Energy (VTNR) was falling -14.3% to $9.48 Friday after announcing a $17.1 million private placement.

Vertex agreed to sell 2.2 million shares of its common stock to institutional investors at a price of $7.75 a share. The price is a 12.3% discount on the 30 day volume-weighted average price of the company's stock.

The company will use proceeds from the offering to help fund its West Coast expansion.

"Vertex Energy, Inc. (Vertex) is an environmental services company that recycles industrial waste streams and off-specification commercial chemical products. The Company manages the transport, storage and delivery of the aggregated feedstock and product streams to end users. Vertex operates in two divisions. The Company's Black Oil division aggregates used motor oil from third-party collectors and sells used oil to the Company's customers for use as a feedstock or replacement fuel for industrial burners. Vertex's Refining and Marketing division aggregates and manages the re-refinement of used motor oil and other petroleum by-products and sells the re-refined products to its customers. In October 2013, Vertex Energy Inc acquired a 51% interest in E-Source Holdings LLC."